Chemed Pares Expectations For Business In 2009

CINCINNATI (AP) — Chemed Corp. trimmed its expectations for 2009 on Wednesday, expecting slightly lower revenue for both its Vitas nursing homes and Roto-Rooter plumbing business.

Chemed said it expects revenue for Vitas Healthcare to grow between 5.5 percent and 7 percent this year, down from a previous view of 6 percent to 7.5 percent. It estimated growth of 3 to 4 percent for Roto-Rooter, compared with 4 to 5 percent.

Vitas reported $808.4 million in revenue in 2008, and Roto-Rooter's revenue totaled $340.5 million.

The company reported first-quarter results that were about equal to Wall Street estimates. While Vitas had a strong quarter, Chemed said Roto-Rooter didn't book as many jobs. The plumbing unit's revenue held steady due to price increases, but its profit fell.

Chemed also adjusted its profit forecast. While the company still expects to earn $3.70 to $3.95 per share, its estimate is now based on a slightly lower share count. That suggests a somewhat smaller profit.

On average, Thomson Reuters says analysts expect a profit of $3.50 per share. In afternoon trading, Chemed shares slid $1.69, or 4 percent, to $40.36.